Securities fraud class action litigation has been filed on behalf of investors in American Renal Associates Holdings, Inc. (“ARA” or the “Company”) (NYSE: ARA). If you purchased or otherwise acquired the securities of American Renal Associates Holdings, Inc. (“ARA” or the “Company”) (NYSE: ARA) between April 20, 2016 and August 18, 2016, inclusive (the “Class Period”), and/or pursuant or traceable to American Renal’s false and misleading Registration Statement and Prospectus issued in connection with the Company’s initial public offering of common stock (“IPO”) on or about April 21, 2016, you may move the Court for appointment as lead plaintiff by no later than October 31, 2016.
You may retain Lieff Cabraser Heimann & Bernstein, LLP, or other attorneys, as your counsel in the actions. Recognized by the National Law Journal as one of the nation’s top plaintiffs’ law firms, Lieff Cabraser is committed to safeguarding the rights of investors and upholding the integrity of the market. We have significant experience and a successful track record of representing institutional and individual investors in securities and financial fraud litigation.
ARA investors may choose to have Lieff Cabraser review their claim by completing the contact form below. You can also call Sharon M. Lee of Lieff Cabraser at 1-800-541-7358 to discuss the litigation.
Background on the ARA Securities Class Litigation
ARA is a Massachusetts-based provider of outpatient dialysis services, which owns 200 dialysis clinics throughout the country for patients suffering from chronic kidney failure or end stage renal disease.
The actions allege that ARA filed a false and misleading Prospectus as part of its April 22, 2016 IPO Registration Statement, and subsequently continued those misrepresentations, when it failed to disclose that ARA illegally steered patients who qualified for Medicare and Medicaid plans into more expensive Affordable Care Act (“ACA”) plans to obtain greater reimbursement for ACA’s services. ARA allegedly funded a third-party charitable organization (the American Kidney Fund, or “AKA”) to pay private insurance premiums only for treatments that would benefit ARA, and predominantly in locations without “in network” dialysis centers, so that ARA would be paid “out-of-network” rates.
Nonetheless, ARA’s Prospectus maintained that ARA “adhere[d] to stringent billing, reimbursement, and compliance procedures,” and ACA later stated that patients “opt[ed for” ACA products, despite illicitly steering patients to those same services.
On July 2, 2016, three affiliates of the insurer UnitedHealth Group (“United Health”) filed suit against ARA alleging that it had engaged in a “fraudulent and illegal scheme” that violated various state anti-kickback and insurance fraud statutes, in which ARA convinced patients eligible for Medicare and Medicaid to enroll in UnitedHealth plans by referring them to AKA, which paid their insurance premiums. On this news, the price of ARA’s stock price fell $2.82 per share, or 9.88%, from a previous closing price of $28.53, to close at $25.71 on the next trading day, July 5, 2016, on elevated trading volume.
On July 27, 2016, Anthem, Inc. reported that it was reviewing the reasons behind “higher than expected payments for dialysis payments during the first half of the year.”
On August 18, 2016, the Centers for Medicare and Medicaid Services (“CMS”) announced that it had launched an investigation into whether dialysis centers such as ARA were steering eligible Medicare and Medicaid recipients to “individual market plan[s]” to obtain higher rates.” On this news, the price of ARA’s shares fell $2.31 per share, or 10.44%, from a previous closing price of $22.21, to close at $19.81 on August 19, 2016, on extremely heavy trading volume.
About Lieff Cabraser
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